finance

[bundoran]

does a person who is made redundant have to pay tax on any monies received?

[factor-fiction]

You don't pay tax on the first £30000. Anything over that you pay tax at the appropriate rate. If the redundancy pay is less than £30000 you pay no tax on it.
If you get no further work before 1st April you may be eligible for a modest tax rebate in respect of this tax year

[factor-fiction]

Just to be clear though, you will still be taxed on your final salary payment (unless it is Pay In Lie of Notice)

[bundoran]

thank you factor30

[factor-fiction]

Here it is straight from the horse's mouth:
http://www.hmrc.gov.u...undancy-factsheet.pdf

[d9f1c7]

The other thing is that if it's a sizable payout it can actually push you into the 50% bracket for that year.

[factor-fiction]

It's not unusual for some of the redundancy payment to be taxed at 40% (after allowing for previous earnings in the tax year) but in my experience it's unusual for a tax rate of 50% to apply since that occurs only on earnings over some £150,000 in the tax year.